Canadian Fintech: Credit Union Merger 💍
Thoma Bravo selling two Toronto fintechs. Nuvei expands to Brazil. Walnut raises.
Good morning! Welcome back to Canadian Fintech, a newsletter for founders, operators & investors.
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💰 Funding
Layer 2, a Toronto based payment infrastructure company for multi currency disbursements and collection raised $10m.
Inscora, an underwriting and sales platform for cyber insurance brokers, raised $2m.
Relay, another Canadian software for cyber insurance brokers, was acquired by At Bay, an insurer in 2022.
Walnut, an embedded insurance provider, raised $4.6m.
The platform gives insurers & brokers cheaper distribution by being offered at the point of sale, versus front loading marketing costs through traditional advertising.
🤝 M&A
2024 has been the year of credit union mergers:
Momentum Credit Union (Ontario) and FirstOntario Credit Union just announced their merger.
ABCU Credit Union (Alberta) and Innovation Federal Credit Union (Saskatchewan) also combined this summer.
connectFirst (Alberta) and Servus Credit Union (Alberta) joined forces back in March.
Nuvei, one of Canada’s largest payment companies, acquired Pay2All, to expand into Brazil. The Montreal based firm is highly acquisitive in foreign markets:
Thoma Bravo, a US private equity firm is reportedly trying to sell large Toronto based tech companies in it’s portfolio:
TMX Group, which owns Canada’s main stock exchanges, is acquiring Newsfile, a press release platform.
It’s a natural tuck in. Publicly traded companies are mandated to make public disclosures.
🚀 Product
Tenure, a personalized employee rewards platform launched in beta.
Employers can offer perks to their employees via Tenure like cashback on personal spend & paying off student debt.
Brokerbot, a marketing automation tool for mortgage brokers and real estate agents launched.
Brokers can use the tool to send home valuation reports to borrowers via a partnership with Opta, a property data provider.
Ledn, a Toronto based crypto lender processed over $1b in loans to ETF market makers in the first half of the year, driven by the approval of spot bitcoin ETFs in the US.
Africhange, an Edmonton based remittance payment provider has expanded into the UK.
TD launched fractional trading on 2,000 stocks and ETFs in North America.
Fractional trading was pioneered in Canada by Wealthsimple, Mogo & Flahmingo (RIP 🙏) back in 2021.
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Have a great week! See ya 👋